Next Business Growth Strategy – This is very reasonable, because statistics often tell us that maintaining a company – it does not have to grow for massive growth – is difficult for him.
According to the Small Business Association of America (SBA), about 20 percent of businesses fail before one year, 50 percent before five years, and 66 percent before’ the ten years.
Next Business Growth Strategy
So what’s the secret sauce behind the business growth success stories that catapult small startup owners into the lives of the wealthy?
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But with market research, a good understanding of your opportunities, and a killer business growth plan, that dream doesn’t have to be so far-fetched.
In this article, we’ll explore the concept of a growth strategy, several types of growth strategies, a game plan to support growing businesses, and some growth strategy examples from smart and successful brands.
Growth strategy is an umbrella term that can include dozens — if not hundreds — of ways to grow your business and achieve higher revenue and profits.
Your business growth strategy should be tailored to the unique circumstances of your business, such as:
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In many cases, the growth strategy is as simple as increasing your marketing efforts to better reach your customers.
There are many types of business development strategies. We will examine five of them: market penetration, market development, product development, consolidation and acquisition.
The first four of these are part of a classic theory of business growth called the Ansoff matrix or Ansoff model.
To get a better picture of each of these five business strategies, let’s use the example of a shoe company called Nu Shu.
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One of the most common business growth strategies, market penetration is an internal growth strategy that involves increasing your market share (or generally getting more customers in your current market) with new products and services you already have.
Take Nu Shu’s example: Its go-to-market strategy means trying to reach millennials to buy the company’s existing sneaker collection.
Market development, also called market expansion, is an internal growth strategy that involves selling your current offering to new markets.
Using Nu Shu’s example, the market expansion strategy is to try to sell the same handmade shoes to other markets, such as Gen Z.
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Of course, this means adjusting the company’s marketing and sales strategy to reach these different audiences without losing appeal in the eyes of the millennial audience.
Product development, also called product expansion, is another internal growth strategy that involves expanding or developing your product line to gain more sales in your existing market.
Product expansion for Nu Shu could include introducing a new line of sneakers to meet the needs of its millennial audience, adding more features to existing sneakers, or adding sandals to ‘his shoe list.
If you have a dropshipping business, a simple product development strategy is to add new products to your relevant niche or niches until you find something your audience likes.
Acquisition As A Growth Strategy
Diversification is an internal growth strategy that carries significant risk because it is selling new products into new markets—a double dose of uncertainty.
Let’s say Nu Shu decides to sell handmade socks to the Gen Z market. You see, this can be difficult if they don’t have experience selling socks or selling to Gen Z.
This is why diversification is not recommended as a small business development strategy. If you don’t have a lot of experience in certain markets, in addition to having extra resources to burn, it’s better to try a “safer” way of growing your business.
An acquisition is an external growth strategy where you buy another company to expand your business. It can be any type of business that fits your long-term plans and business growth goals.
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A successful growth strategy means more than choosing the direction your business will take. A plan outlining your long-term growth goals and an action plan to achieve them is also necessary. Below are some tips to help you get started.
Of course, setting goals is common practice in the business world, but with high growth goals, you’re moving forward.
Generally, you describe goals that require a five to ten year commitment, but each goal is tangible, exciting and something that everyone will “get” without the need for detailed explanations.
How much do you think you will earn in the next ten years? How many customers do you expect to get by then? What income do you expect from your business?
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Loosen the boundaries and let your imagination take over; your growth goals should seem unattainable and ambitious.
In ten years, the brand hopes to generate 10 million dollars a year and hopes to reach this number with a team of 20. He also highlighted the extent of market expansion needed to achieve this goal. In addition, the brand listed the key actions it needs to take in order to achieve its goals.
For most growth goals, you don’t need to worry about the current state of your business. You just need to map them out in a quantifiable way so that it’s easy to develop strategies to help them achieve their goals.
For each growth goal, there is a set of key metrics that help determine whether or not your company will be able to achieve that goal. In most cases, the metrics will have a direct relationship to your company’s revenue and customer acquisition goals.
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For example, if we talk about the ride-sharing company, Uber, one of its key metrics is the number of trips made. Why? Because it directly affects the economic results of the company. If more trips are completed and this number continues to grow, it means that more customers are converting and therefore contributing to Uber’s overall revenue.
You also need to determine your current baseline for these metrics to determine the steps you need to take to achieve business growth.
In the hypothetical example from the previous point, we decided that one of the company’s growth goals was to earn $10 million, and one of the steps to reach that goal that is to increase the organic traffic to 3 million visitors per month.
Therefore, if we want to define the key metrics for BikiniThatSlays growth goals, we can create a yearly line of organic traffic and retention rates.
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As you can see, the company needs to increase its organic traffic by 100 percent every year for the next ten years to reach 3 million visitors per month and increase its annual income.
When creating your growth strategy, make sure you understand the key metrics for your growth goals and how your bottom line needs to change to meet those long-term goals.
Once you know your growth goals and key metrics, the next step is to create a plan to help you navigate the path to achieving those goals as part of your growth strategy. The best growth plan is a set of strategies and specific actions to take to implement that strategy to help achieve your business goals.
Continuing the Bikini ThatSlays example, the growth plan will highlight the critical steps the company needs to take to increase organic traffic and customer retention rates, which have been identified as key indicators of business growth.
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To reach a ten-year traffic goal of 3 million visitors per month, for example, a company needs to increase its organic traffic to 600,000 visitors per month. The growth plan therefore outlines the additional steps Bikini ThatSlays needs to take to achieve this amount of traffic.
Because there are many ways to increase organic website traffic, this aspect of a business growth strategy includes every step a business can take to achieve its traffic goals, including publishing new blog posts, creating YouTube videos, and working with influencers or guest bloggers. .
As you build your personal growth plan, list the small steps you can take to positively impact your initial growth goals. Additionally, conduct quarterly reviews of your progress to ensure you are on track and continue to support your growth strategy. Examples of growth strategies
When it comes to fashion, clothes can become yesterday’s news as soon as they hit Instagram, so Black Milk Clothing completely ignores the conventions of the industry – by not following trends or seasons or going to fashion shows.
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Instead, the brand follows an internal growth strategy by diversifying into the production of leggings, swimwear and clothing featuring popular movies, franchises and comics. It also publishes several new designs every month and most of these articles are based on what is popular with the company’s potential customers.
When it comes to marketing, Black Milk Clothing allows its community to spread the word about its business. For example, if you search, you will find user generated content